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Once you have purchased a commercial property via a pension, it is essential that it is properly managed. There are many property tasks that must be carried out on an ongoing basis, while the property is held with the pension fund.
One of the advantages of The Taylor Patterson SIPP and SSAS is that the member can act as the Property Manager. The list below is an overview and demonstrates that owning commercial property requires on going maintenance and administration, if as the member you decide to take on this role.
What are the main responsibilities of the Property Manager?
When things go wrong, the property manager is the first port of call for the tenants, and they will act as an intermediary between the landlord and tenant.
The role of a property manager is to oversee the ongoing running of a property on behalf of the owner with regard to:-
If being your own property manager appeals to you, you should consider the time and effort required and whether or not your lifestyle will enable you to deliver on your obligations. This means you’ll be the primary contact point for the tenants if something goes wrong. Taylor Patterson appreciate, not all SIPP or SSAS members would wish to take on the role of property manager and Taylor Patterson itself does not take on this role. We are however, happy to provide contact details for local property managers.
If you do not wish to take on this role personally, then you can formally appoint a professional property manager, where you could expect to pay in the region of 10% of annual property rents for their services. As the costs of appointing a property manager and the associated work that is undertaken on behalf of the SIPP or SSAS is an allowable expense, these can be deducted from the pension fund.
Members who are surveyors or property managers may, of course, appoint their own firm as the Property Manager.
Read our detailed Guide to Property Management for more information.
For further information on owning commercial property in a SIPP or SSAS please contact the technical team on 01772 555073.